SECTION 1. Chapter 155, Hawaii Revised
Statutes, is amended by adding a new part to be appropriately designated and to
read as follows:

"Part II. water infrastructure loans

§155-A
Definitions. As used in this part:

"Department"
means the department of agriculture.

"Water
infrastructure charge" means the on-bill charges for the use and services
of the loan program, including the repayment of loans made under the loan
program to be imposed on water utility customers.

"Water
infrastructure loans" and "loan program" means the program
established by this part and loans made to finance the purchase or installation
of water infrastructure equipment for dams, reservoirs, hydroelectric pumping,
storm water reclamation, ditch maintenance, spillways, wells, water ducts, and
water distribution systems.

"Water
infrastructure special fund" means the special fund created pursuant to
section 155-D.

§155-B
Hawaii water infrastructure loan program. There is established a Hawaii water infrastructure loan program, which
shall be a loan program as defined under section 39-51. The program shall be
administered by the department in a manner consistent with chapter 39, part
III. This loan program may include:

(1) Loans made, on terms approved by the department, to
private entities, whether corporations, partnerships, limited liability
companies, or other persons, which entities may lease or provide water
infrastructure equipment to utility customers; and

(2) Direct loans to utility customers, on terms
approved by the department.

§155-C Powers of the department. The department shall have the following powers:

(1) Make loans and
expend funds to finance the purchase or
installation of water infrastructure equipment for dams, reservoirs,
hydroelectric pumping, storm water reclamation, ditch maintenance, spillways,
wells, water ducts, and water distribution systems;

(2) Hold and invest
moneys in the water infrastructure special fund in investments as permitted by
law;

(3) Hire employees
necessary to perform its duties;

(4) Enter into contracts for the service of consultants
for rendering professional and technical assistance and advice, and any other
contracts that are necessary and proper for the implementation of the loan program;

(5) Enter into
contracts for the administration of the loan program, in accordance with chapter
103D;

(6) Establish loan
program guidelines to carry out the purposes of this part;

(7) Perform all functions necessary to effectuate the
purposes of this part;

(8) Delegate authority to the chairperson of the
board of agriculture to approve loans where the requested amount plus any
principal balance on existing loans to the applicant does not exceed $25,000 of
state funds; and

(9) Adopt rules pursuant to chapter 91 necessary for
the purpose of this part.

§155‑D
Hawaii water infrastructure special fund. (a)There is established the Hawaii water infrastructure special
fund into which shall be deposited:

(1) Water
infrastructure charges received for the use and services of the loan program,
including the repayment of loans made under the loan program;

(2) All other funds received by the department and legally
available for the purposes of the water infrastructure special fund;

(3) Interest earnings on all amounts in the water
infrastructure special fund; and

(4) Any other moneys
permitted by the board of agriculture.

(b) Moneys in the water infrastructure special
fund may be used for the purposes of:

(1) Making water infrastructure loans;

(2) Paying administrative costs of the loan program;
or

(3) Paying any other costs related to the loan
program."

SECTION 2. Chapter 155, Hawaii Revised Statutes, is
amended by the title of the chapter to read as follows:

"AGRICULTURAL [LOAN]
AND WATER INFRASTRUCTURE LOANS"

SECTION 3. Chapter 155, Hawaii Revised Statutes, is
amended by designating sections 155-1 to 155-14 as part I and inserting a title
before section 155-1 to read as follows:

"PART
I. AGRICULTURAL LOAN PROGRAM"

SECTION 4. There is appropriated out of the
general revenues of the State of Hawaii the sum of
$ or so much thereof as may be
necessary for fiscal year 2016-2017 for deposit into the Hawaii water
infrastructure special fund.

There is appropriated out of
the Hawaii water infrastructure special fund the sum of
$ or so much thereof as may be
necessary for fiscal year 2016-2017 for the purposes of the fund.

The sum appropriated shall be expended by the
department of agriculture for the purposes of this Act.

SECTION 5. There is appropriated out of the
general revenues of the State of Hawaii the sum of $ or so much
thereof as may be necessary for fiscal year 2016-2017 for the implementation of
the Hawaii water infrastructure loan program.

The sum appropriated shall be expended by the
department of agriculture for the purposes of this Act.

SECTION 6. In codifying the new sections added by
section 1 of this Act, the revisor of statutes shall substitute
appropriate section numbers for the letters used in designating the new
sections in this Act.

SECTION 7. This Act shall take effect on July 1, 2050.

Report Title:

Water Infrastructure Loans; Infrastructure Financing;
Appropriations

Description:

Establishes the Water Infrastructure Loan Program under
the Department of Agriculture. Allows the Department to make loans for water
infrastructure development, repair, and maintenance. Establishes the water
infrastructure special fund. Makes appropriations. Effective 7/1/2050. (SD2)

The
summary description of legislation appearing on this page is for informational
purposes only and is not legislation or evidence of legislative intent.